St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1887-04-13


extraordinary powers and privileges in order
that they might serve the public. The total
number of acres granted railroads in this
state is 1l,439,557, equal to 1854
square miles, or more than the states of
New Hampshire and Massachusetts contain.
The Milwaukee road received more than
twice as much as Rice county contains. They
have sold enough 10 amount to more than
one-half the assessed valuation of Rice
county, and still have over $4,000 acres left.
Prior to 1883 gratuities amounted to SIT, $685.
090-or more than $4,000 FOR every mile of
railroad in the state. The government has
the right to regulate within certain limita-
tions the charges made by railroad corpora
tions for the transportation of persons and
property. This the state and national gov
ernment have both attempted to do.
The evil sought to be remedied is unjust
discrimination in favor OF persons
and localities. These determinations
in favor of persons result in
gigantic monopoies. For instance, the
Standard Oil company, incorporated fifteen
years ago with g capital of $780, 600 is now val
ued at 500, 900, 600. Its rebates were Sl0,000,
900 in eighteen months. This is the testimony
of A. J. Cassatt, vice president of the Penn
Sylvania Railroad company. Its rebates have
been
EQUAL TO ITS PROFITS.
The determinations in favor of that COM
pany on shipments over the Lake Shore road
amount annually to S3O0,G00. The Cleveland
s. Marinette railroad was placed in the hands
of receiver by the United States circuit
court. Complaint was made and the judge
found that the receiver was charging indie
pendent shippers 81 cents per barrel
and the Standard Oil company 10 cents
per barrel. The receiver filed a letter
from the Standard Oil company stating:
''You shall make uniform rate of 80 cents a
barrel for all persons excepting the Standard
Oil company; you shall charge them 10 cents
per barrel for oil and also pay them 25 cents
per barrel out of the So cents collected of
other Shippers" If the receiver complied
with this, the Standard Oil company agreed
to give HIM $4,000 worth of business per
month. He accepted the proposition and did
business on that basis until he was removed
by the court, By this arrangement the STAN
dard Oil company got its Oil carried for
nothing and made 15 cents per
barrel on every barrel shipped by its
competitors. The freight rates last
summer from Chicago to ST. Paul
and from Chicago to Faribaut were as fol-
lows: From Chicago to ST. Paul, frst-class,
40c to Faribault, 20; Second-class TO st. Paul,
80, to Faribault, So third-class to St. Paul,
20, to Faribault, 40; fourih-class to st. Paul.
15, to Farbault, 80. Weight on coal from
Chicago 20 St. Paul is 81 per ton, to Faribault,
S3.25 per ton. These rates prevent our mer-
chants from engaging in the wholesale trade.
They injure the retail trade. People go to
st. Paul because they can buy at Il less price
and greater variety to select from. They
make the consumer pay an unnecessary
price for then GOODS. Weight on wheat and
-four from
MINNEAPOLIS TO CHICAGO
are cents per 100 hundred pounds from Rose
mount to Chicago IA cents, from Farlbault II
cents, from Austin Is cents, from Lyle 10
cents. If q man living in Faribault ships wheat
from Minneapolis to Chicago the rates are
l..
ing in Minneapolis ships it the rates are
cents for him.
The freight rate per carload on wheat, corn,
oats, etc., from Minneapolis, as per tariff
Of August %, 'S6, to Dundas cents per 100,
to Faribault cents Owatonna II cents, Aus
tin 13 cents, Lyle Is cents, Chicago IS cents.
These determinations in ravor of terminal
points are not peculiar to the state of Mime
sofa.
DETERMINATIONS in favor of localities builds
up terminal and competing points at
the expense Of intermediate and non-oorn-
peting points. More than three-fourths of
the increase in value of real estate in Minnie
sofa since 1880 has been in Ramsey and Hem
nepin counties. More than one-third of all
the taxable property of the state is in st.
Paul and Minneapolis. The object sought to
be attained by the interstate commerce act is
just, equal and reasonable rates of freight
Reasonable returns for capital actually in
o
service. The interstate commerce law pro-
hibits all unjust and unreasonable charges
for the transportation of persons and prop
erty. Here the opposition of the railroad
begins. They want to charge rates sufficient
to pay reasonable dividends, not only on the
stock which has gone into the construction
and equipment of the roads, but also on
"watered stock" which forms no part of the
cost OF their roads. The people are willing to
pay rates which will be sufficient to enable
them to receive d reasonable profit on the
actual cost of the roads and their equip
ments, and no more.
THE NORTHERN PACIFIC
has $40, 100000 of watered stock. $4,000 600
of that kind Of stock were put into the New
York Central & Hudson River railroad in
'6T-S by the Vanderbilt management.
The speaker gave a comprehensive gst
of the interstate commerce law, and com
mented on it in the following strain:
Now then can this law be enforced, and
what will be the result? The long and short
haul law has been tried in Massachusetts. 1t
has been in force in that state since 1871.
The railroad commissioners of that state say,
in speaking of this law in their report for
January, 1885, no law in this state is more
enforced than this. Indeed it
would be more correct to say that instead of
being enforced at all, it is universally ac-
quiesced in and obeyed. 1t is true that in 81
it was shown that railroad company in this
state was acting in violation Of this law, but
upon receiving the opinion of this board that
it was so offending, the corporation desisted
from the practice and lowered it's rates to
conform to the statute requirements
and this was done as managers
of that corporation informed their
stockholders. at the annual loss of S32, 600
illegally extorted heretofore from their Gus
TONER'S. Since that time neither this nor any
other railroad company has, to the knowledge
Or belief of the board. violated this provis-
ion of the statute. 1t has remedied a great
evil and great injustice. 1t has helped to
save small Industries and small places from
being crushed out of existence. 1t has
checked tire tendency to consolidation which
would build up one place or few places at
the cost of local enterprise. thus creating
traffic for the railroads by giving occupation
to Their customers. 1t is believed that any
attempt TO repeal this safeguard of fair
dealing would receive almost
UNIVERSAL CONDENSATION
from the business men of Massachusetts,
Judge Russell, the chairman of the board of
railroad commissioners of Massachusetts.
wrote me under date of December, 1856, as
follows: ''To your question as to the working
of the long and short haul bill in Massach,I-
setts l would say that it has worked per-
fectly, preventing the unjust discrimination
which it was intended to forbid and prevent
ing it without the need of actual suits of law"
Iue NhIuc VI Teitl cState HAS iilcrSaSeQ III Mas
sachusetts since this law has been in force
S30,000,0 900. In New York, where they have
no long and short haul law, the value of real
estate has deprecated during the same
time S226,000,000, although the average of
improved land was increased 1000, 900 acres.
The cause of this depreciation can be imag-
1ned from the fact that railroad company
in that state charges rs cents to carry a tub
OF butter 165 miles to New York city, while it
charges only 80 cents to carry it from Elgin
to New York over the same road, a distance
or l,00O miles. The Hepburn committee, of
New York, after an investigation lasting
eight months, unanimously recommended the
na9SnOR of n md che, Lam